CrowdStrike Beats on Q2 Earnings, Stock Down on Dim Q3 Outlook

CrowdStrike Holdings, Inc. CRWD reported non-GAAP earnings per share of 93 cents for the second quarter of fiscal 2026, which surpassed the Zacks Consensus Estimate by 12.1% and came ahead of management’s guidance of 82-84 cents. Moreover, the bottom line increased 5.7% on a year-over-year basis.CrowdStrike’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 14.7%.Despite reporting better-than-expected second-quarter results, shares of CrowdStrike lost 3.4% during Wednesday’s extended trading session amid a weak third-quarter revenue outlook, which fell short of the consensus estimate.  The company’s second-quarter revenues of $1.17 billion surpassed the Zacks Consensus Estimate of $1.15 billion. Moreover, the top line increased 21% year over year and beat management’s guidance of $1.145-$1.15 billion. The strong adoption of the Falcon platform and better sales execution mainly aided top-line growth in the fiscal second quarter.CrowdStrike Price, Consensus and EPS Surprise CrowdStrike price-consensus-eps-surprise-chart | CrowdStrike QuoteTop-Line Details of CrowdStrikeSubscription revenues (94.4% of the total revenues) jumped 20.1% year over year to $1.10 billion. Professional services revenues (5.6% of the total revenues) increased 44.7% year over year to $66 million.As of July 31, 2025, annual recurring revenues (ARR) were $4.66 billion, up 20% year over year. The company added $221.1 million to its net new ARR in the reported quarter.CrowdStrike’s subscription customers, who adopted six or more cloud modules, represented 48% of the total subscription customers; those with seven or more cloud modules accounted for 33% and those with eight or more cloud modules represented 23% as of July 31, 2025.CrowdStrike’s Operating DetailsCrowdStrike’s non-GAAP gross profit increased 19.7% to $907.4 million in the fiscal second quarter from $758.2 million in the year-ago quarter. The non-GAAP gross margin declined 100 basis points (bps) to 78%.The non-GAAP subscription gross profit soared 19.2% year over year to $884.7 million, while the gross margin fell 100 bps to 77% year over year. The non-GAAP professional gross profit increased 41.4% to $22.7 million, while the gross margin fell 100 bps to 34% on a year-over-year basis.CrowdStrike’s total non-GAAP operating expenses increased 26.2% to $652.5 million from $517.2 million reported in the year-ago quarter. As a percentage of revenues, non-GAAP operating expenses increased to 55.8% from 53.7% in the year-ago quarter.Non-GAAP sales and marketing (S&M) expenses jumped 25.9% year over year to $364.3 million. Non-GAAP research and development (R&D) expenses climbed 27.9% year over year to $217.3 million. Non-GAAP general and administrative (G&A) expenses increased 22.4% year over year to $70.9 million. As a percentage of revenues, S&M and R&D expenses expanded 100 bps, while G&A expenses remained flat.The non-GAAP operating income increased 5.8% to $254.95 million. The non-GAAP operating margin for the quarter contracted 300 bps year over year to 22%.CrowdStrike’s Balance Sheet & Cash FlowAs of July 31, 2025, cash and cash equivalents were $4.97 billion. CrowdStrike had a long-term debt of $744.73 million.In the fiscal second quarter, CrowdStrike generated operating and free cash flows of $326.6 million and $283.6 million, respectively.CrowdStrike’s Q3 and FY26 GuidanceCrowdStrike initiated guidance for the fiscal third quarter. For the fiscal third quarter, CrowdStrike anticipates revenues between $1.208 billion and $1.218 billion. The non-GAAP operating income is expected in the band of $256-$252 million. Non-GAAP net income is forecasted in the range of $238.1-$242.8 million. The company expects non-GAAP earnings per share in the band of 93-95 cents. The consensus mark for fiscal third-quarter revenues and non-GAAP earnings is pegged at $1.23 billion and 90 cents per share, respectively.For fiscal 2026, CrowdStrike now expects revenues between $4.749 billion and $4.805 billion compared with the previous guidance of $4.743-$4.805 billion. The non-GAAP operating income for fiscal 2025 is now projected in the band of $1-$1.04 billion, up from previous guidance of $970.8-$1010.8 million. For fiscal 2026, the company now expects non-GAAP net income in the range of $922.4-$954 million, up from the prior guidance of $878.7-$909.7 million. Non-GAAP earnings per share are anticipated in the band of $3.6-$3.72, up from the prior estimate of $3.44-$3.56. The consensus mark for fiscal 2026 revenues and non-GAAP earnings is pegged at $4.78 billion and $3.50 per share, respectively.CrowdStrike Zacks Rank & Stocks to ConsiderCurrently, CrowdStrike carries a Zacks Rank #3 (Hold).Amphenol APH, F5 FFIV and Analog Devices ADI are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. Amphenol and F5 sport a Zacks Rank #1 (Strong Buy) each, while Analog Devices carries a Zacks Rank #2 (Buy) at present.  You can see the complete list of today’s Zacks #1 Rank stocks here.Amphenol shares have gained 58.6% year to date. The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings is pegged at $3.02 per share, indicating an increase of 59.8% from the year-ago quarter’s reported figure. The estimate has risen 3.1% over the past 30 days.F5’s shares have surged 26.4% year to date. The Zacks Consensus Estimate for F5’s fiscal 2025 earnings is pegged at $15.38 per share, indicating a gain of 15% from the year-ago quarter’s reported figure. The estimate has risen 5.4% over the past 30 days.Analog Devices’ shares have gained 20.3% year to date. The Zacks Consensus Estimate for Analog Devices’ full-year 2025 earnings per share is pegged at $7.69 per share, indicating a gain of 20.5% from the year-ago quarter’s reported figure. The estimate has risen 3.9% over the past seven days.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Analog Devices, Inc. (ADI): Free Stock Analysis Report Amphenol Corporation (APH): Free Stock Analysis Report F5, Inc. (FFIV): Free Stock Analysis Report CrowdStrike (CRWD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks